"Is this to benefit the seller or just for ebay to show that can monopolize the site to their socialistic class of doing things?"
The only real benefits to the seller is that it attracts buyers & it gives you an automatic 5 star rating in S&H charges. Your DSR in S&H is pretty low. Offering the free shipping will bring that up, but it will take time. Once that's up, you should be back to normal. It's a pain & alot of people have complaints about Ebay, but I continue to believe that I would not be able to do this without Ebay, so I adjust.
Don't know if you know this or already have it set up, but if you offer 1 day handling (& ship within 1 day) & a 14 day return policy, you will get an automatic 5 stars in the S&H time. Since Ebay's Buyer Protection makes you take back almost everything, you might as well have a return policy. Then if there is NO communication between you & the buyer, you get an automatic 5 stars in communication. So there are ways around the DSR's & you just have to adjust.
As far as them monopolizing the site to their way of doing things....it's their ballpark. Sellers can play ball or take their ball & go home.